Inventory Value and COGS, Correct Every Day
Every receipt and sale updates inventory value and posts cost of goods sold in the same moment, so your books reflect real inventory position, not a period-end estimate.
What inventory accounting does
Periodic inventory accounting means guessing at COGS until a physical count corrects it. Fintra's inventory accounting runs perpetually: every receipt, sale, and adjustment updates the inventory ledger and posts COGS at the moment it happens, so the balance sheet and P&L stay accurate between counts.
- Perpetual valuation updates inventory value with every transaction
- Cost of goods sold posts automatically at the moment of sale
- Physical counts reconcile against a live expected balance, not a blind guess
- Inventory value ties directly to the general ledger, always
Core capabilities
| Capability | What it does | What it replaces |
|---|---|---|
| Perpetual valuation | Updates inventory value with every receipt and sale | Periodic inventory with month-end adjustments |
| Automatic COGS | Posts cost of goods sold at the point of sale | Manual COGS journal entries |
| Count reconciliation | Compares physical counts to the live expected balance | Physical count as the only source of truth |
| GL tie-out | Keeps inventory value reconciled to the ledger always | Periodic inventory-to-GL reconciliation projects |
How it works
From receipt to reconciled ledger
- 1
Receive inventory
Goods received against a purchase order update the perpetual ledger at landed cost.
- 2
Sell or consume
A sale or a work order material issue reduces inventory and posts COGS in the same transaction.
- 3
Count periodically
Physical counts are compared against the system's expected balance, and variances are investigated, not assumed.
- 4
Reconcile to the GL
Inventory value on the balance sheet always matches the perpetual ledger - no separate reconciliation project.
A traceable value, always
Because every change to inventory value is a discrete, logged transaction, a discrepancy found during a count can be traced back to the specific receipts, sales, or adjustments that produced the current balance, rather than requiring a full recount to explain it.
Frequently asked questions
What is the difference between perpetual and periodic inventory?
Periodic inventory only updates value and COGS when a physical count is performed, leaving the books wrong in between. Perpetual inventory, which Fintra uses, updates value and posts COGS with every receipt and sale, so the books are accurate continuously.
Do I still need to do physical counts?
Yes - physical counts remain the check on the system, not a replacement for it. Fintra compares your count results against the live expected balance so any variance is a specific, investigable discrepancy rather than the only data point you have.
How does COGS get posted?
COGS posts automatically at the moment inventory is sold or consumed, using the actual recorded cost of the units involved, so gross margin on any invoice is accurate the moment it is issued rather than estimated until month-end.
Does inventory value always match the general ledger?
Yes. Because the perpetual ledger is the source of the inventory balance shown on the balance sheet, there is no separate reconciliation step required between an inventory subledger and the GL - they are the same number.
Stay in the loop
One practical finance briefing a week - new guides, checklists, and benchmarks.
Stop waiting for the count to know your numbers
Start free, no card required. Value inventory and post COGS perpetually, transaction by transaction.
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